A monopoly is likely to charge more and produce less than would be the case if perfectly competitive firms characterized the same industry.

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Quizplus · Accepted Answer

Monopolies have market power, meaning they are able to charge higher prices and produce less than in a perfectly competitive market due to a lack of competition. In a perfectly competitive market, firms are price takers and have no market power, which leads to lower prices and higher output.

A Monopoly Is Likely to Charge More and Produce Less